Shares of Qualcomm (QCOM) fell in after-hours trading after the semiconductor and equipment giant announced its first-quarter earnings, which exceeded market expectations. The company reported earnings of $3.41 per share on revenue of $11.67 billion versus analysts’ predictions of $2.96 per share on revenue of $10.9 billion. Interestingly, QCOM has beaten earnings estimates in its previous nine quarters (including today).
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The most significant segment for the company was the QCT segment, which designs and provides software and other technologies for smartphones and other devices. QCT sales grew by 20% year-over-year to $10.084 billion. Handsets were the major growth driver of QCT sales, as revenue increased 13% to $7.574 billion.
Guidance for Q2 2025
Looking forward, management has provided the following guidance for Q2 2025:
- Q2 revenue between $10.2 billion and $11.0 billion versus estimates of $10.36 billion
- Q2 EPS of $2.70 to $2.90 compared to expectations of $2.71
As you can see, the guidance was better than expected. Still, even when combined with the strong Q1 results, the stock price fell in after-hours trading.
Is Qualcomm a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 11 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 24% rally in its share price over the past year, the average QCOM price target of $198.15 per share implies 12.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
